A Swiss maker of running shoes and sportswear, On builds its signature CloudTec cushioning — the hollow pods on its soles — into shoes worn by runners and everyday athletes. The company was founded in Zürich in 2010 by three friends, including retired triathlete Olivier Bernhard, who famously glued pieces of garden hose to a prototype shoe to test his cushioning idea. The name "On" comes from the promise of running on clouds, and tennis great Roger Federer joined as a co-entrepreneur in 2019.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
On Holding's net income fell 16% to CHF 203.7M as a CHF 173.2M FX loss reversed a prior-year gain, even as revenue rose 30% and gross margin expanded.
A large foreign-exchange loss erased the bottom-line gains from a year of rapid growth. rose 30% to CHF 3.0 billion and expanded to 62.8%, but fell 16% as a CHF 173.2 million currency loss replaced a CHF 67.7 million gain in 2024. The underlying business accelerated, but currency exposure turned a year of operating progress into an earnings decline.
Key takeaways
rose 30.0% to CHF 3,014.0 million, or 35.6% on a constant-currency basis, driven by growth across all channels, regions, and product categories.
margin expanded 2.2 percentage points to 62.8%, primarily due to freight efficiencies and favorable foreign exchange impacts on the cost of goods sold.
decreased 15.9% to CHF 203.7 million, as a CHF 173.2 million foreign exchange loss—stemming from the revaluation of USD-denominated balance-sheet items—replaced a CHF 67.7 million gain in the prior year.
rose 46.3% to CHF 567.0 million, with the margin expanding to 18.8% from 16.7%, reflecting the underlying in the business.
The direct-to-consumer channel grew 33.7% to CHF 1,260.5 million, reaching 41.8% of , driven by e-commerce and the expansion of owned retail stores.
fell to CHF 359.5 million from CHF 510.6 million, as higher absorbed cash, while total cash and equivalents rose to CHF 1,019.9 million.
What changed
The direct-to-consumer channel sustained its growth trajectory, rising 33.7% and increasing its mix to 41.8% of sales, up from 40.7% in 2024, as the company continued to open owned stores.
The foreign-exchange gain that boosted 2024 reversed sharply, resulting in a CHF 173.2 million loss, confirming the risk flagged in prior periods about the company's heavy USD base and CHF reporting currency.
The Atlanta automated fulfillment center became fully operational during the year, with the Belgium facility expected to follow in 2026, marking progress on the multi-year warehouse investment program.
What to watch
Whether the CHF 173.2 million foreign-exchange loss repeats or grows, given the company's heavy USD base and CHF reporting currency, and what hedging actions management takes.
The growth rate and margin profile of the direct-to-consumer channel as it surpasses 40% of sales and the company continues to invest in new owned retail stores.
The impact of the new 20% U.S. reciprocal tariff on Vietnamese footwear imports, given that approximately 90% of On's production is concentrated in Vietnam.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
Table of Contents We are exposed to certain market risks arising from transactions in the normal course of business. Such risk is principally associated with foreign currency exchange rates. See further discussion in "Item 5. Operating and Financial Review and Prospects." The in…
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Table of Contents
We are exposed to certain market risks arising from transactions in the normal course of business. Such risk is principally associated with foreign currency exchange rates. See further discussion in "Item 5. Operating and Financial Review and Prospects."
The information set forth under “Item 18. Financial Statements—Note 5. Risk management" is incorporated by reference.
Heavy reliance on Vietnamese manufacturing exposes On to severe tariff and supply chain risks amid intense competition and brand-reputation challenges.
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expanded to 62.8%, continuing the upward trajectory from 59.6% in 2023 and 60.6% in 2024, as the benefits of lower freight costs and a higher DTC mix materialized.
Progress on the Belgium automated fulfillment center reaching full operations in 2026 and its effect on distribution costs and efficiency.
A new 20% US reciprocal tariff on Vietnam, where ~90% of footwear is made, directly increases costs and threatens margins, with further trade policy uncertainty.
The brand's premium image is highly vulnerable to negative publicity from product quality issues, unethical supplier practices, or geopolitical controversies, especially given sourcing from China and Vietnam.
Rapid growth and a concentrated, discretionary product line create operational strain and significant exposure to shifts in consumer spending, fashion trends, and economic downturns.
Intense competition from larger, better-resourced rivals and the risk of imitation could erode market share and force pricing pressure on On's premium products.
The dual-class share structure concentrates voting control with the founders (~56%), limiting shareholder influence and potentially depressing the stock's valuation and index eligibility.
On is a premium sportswear brand selling footwear, apparel, and accessories through wholesale and DTC channels globally, with net sales of CHF 3.0B in 2025.
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grew 30.0% to CHF 3,014.0 million in 2025, driven by the Shoes category (CHF 2,804.4 million) and the Americas region (57.7% of sales).
The company operates two sales channels: Wholesale (58.2% of 2025 ) and Direct-to-Consumer (41.8%), which includes 67 owned retail stores and a global e-commerce platform.
On's growth strategy focuses on elevating its core running market share, expanding its owned retail network and presence in China, and building a full sportswear brand across training and tennis.
Products are engineered in Switzerland using proprietary technologies like CloudTec and LightSpray, and substantially all manufacturing is outsourced to a concentrated network of fewer than 30 third-party suppliers, primarily in Vietnam.
The company is investing in automated distribution infrastructure, with a fully operational warehouse in Atlanta and another in Belgium expected to be fully operational in 2026 to support multi-channel growth.